The US GDP figures for the third quarter will be released next week, and a historical rise of 31.8 percent is all set to surprise investors. Even though it will too late to impact the 2020 Presidential election, the data will definitely affect the stock markets and cryptocurrencies.
The latest US economy scorecard is unprecedented not only due to the expected 31.8 percent surge but also reflects the biggest increase in recorded history. As per the survey conducted by MarketWatch, most economists believe the pent-up consumer demand and rapid opening up of the economy have resulted in the historic rise.
The US GDP data will be released on Thursday, and most Americans would have cast their votes by then. So, President Donald Trump can’t hope to make any considerable lead over Joe Biden. But Bitcoin enthusiasts are hoping that the rising BTC and S&P 500 correlation will bode well for the king of cryptocurrencies.
What rising US GDP means for the economy
The US GDP figures are considered the ultimate barometer of any economy. Consumer growth is central to an economy. Pent up demand from various quarters in the past three months has now come back in the past quarter. As people open up their wallets, the consumer demand will pick up pace slowly.
Also, low-interest rates were instrumental in driving growth in home sales. Non-metro home rental and purchases have also risen since people moved away from big cities. Rising car sales also added more fuel to the economic engine.
So, what does a roaring economy mean for Bitcoin?
Even though Bitcoin has shown safe-haven characteristics during economic downturns, the crypto king is also known to travel in sync with a rising economy. The correlation of Bitcoin with the S&P 500 has made headlines in the past as well. It has moved in tandem with the historic index for the past 5-6 months following every trough and valley.
Even though the rising US GDP still won’t compensate for the damage done by COVID-19 lockdowns, economists still hope for a relatively quick recovery.
Today, altcoins are all in the green, and so is the BTC/USD pair. Bitcoin is posting fresh annual highs on the back of a roaring stock market and strong fundamentals. As the pair crosses the $13,100 level, traders hope that its relation with S&P 500 holds well on its journey to the $14,000 level.